Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 231740 times)

Offline wildcard

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2960 on: January 20, 2021, 05:03:48 AM »
FTFY


someone who is eligible for Unemployment when living abroad, aka, he works for a NJ company. Is he eligible as a 1099 contractor for PPP while living abroad? He is completely set up to work and operate remotely......

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2961 on: January 20, 2021, 07:59:01 AM »

someone who is eligible for Unemployment when living abroad, aka, he works for a NJ company. Is he eligible as a 1099 contractor for PPP while living abroad? He is completely set up to work and operate remotely......

For PPP residency is non-negotiable.
It follows the IRS rules. I believe it's 183 days a year that you must be in the US.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2962 on: January 20, 2021, 09:21:33 AM »
New forgiveness forms are out:
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-Instructions--Form-3508S-1192021.pdf
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-Instructions--Form3508EZ-1192021.pdf
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-and-Instructions--Form-3508-1192021.pdf

The way they state owner forgiveness makes me think we can go with a 2.5 month period instead of 10.75 weeks. This is very beneficial for those who get funded for First Draw in the next 10 days, as February is a short month, and leaves just about enough time to go for Second Draw.

They FTE/Salary reduction waiver is only in place for loans of $50k or less. Between $50k+ and $150k you have to follow the reduction rules even though you can use the easier form.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2963 on: January 20, 2021, 09:33:57 AM »
Thanks. There's a discrepancy in the IFR and a later FAQ, so I'm trying to get some clarity before I make any changes.

Spoke to some experts and cleared it up.
It's gross receipts, not gross income, so COGS should be excluded (or added back to gross income).

https://home.treasury.gov/system/files/136/Second-Draw-PPP-Loans--How-Calculate-Revenue-Reduction-Maximum-Loan-Amounts-Including-Documentation-Provide1192021.pdf
See page 4, question 5, for very exact instructions.

Offline Traveler718

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2964 on: January 20, 2021, 09:46:28 AM »

The way they state owner forgiveness makes me think we can go with a 2.5 month period instead of 10.75 weeks. This is very beneficial for those who get funded for First Draw in the next 10 days, as February is a short month, and leaves just about enough time to go for Second Draw.


What are the odds there will still be money left in the program 2.5 months from now? And if it runs out, is there any chance Congress will replenish it?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2965 on: January 20, 2021, 10:30:41 AM »
What are the odds there will still be money left in the program 2.5 months from now? And if it runs out, is there any chance Congress will replenish it?

Some people think funds won't deplete so quickly (or at all) because of the eligibility requirements for a 2nd draw (25% revenue reduction, businesses with fewer than 300 employees etc). Personally I feel like funds will deplete sooner or later, hard to know exactly when. If lots of businesses pursue a 1st draw now (and a 2nd draw in 2-3 months) then funds will run out faster. With dems in control of the government, and their other stimulus priorities, it isn't a given that funds will be replenished. But Dems are happy to print money so there's certainly a chance.

Offline minkr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2966 on: January 20, 2021, 11:13:55 AM »
New forgiveness forms are out:
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-Instructions--Form-3508S-1192021.pdf
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-Instructions--Form3508EZ-1192021.pdf
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-and-Instructions--Form-3508-1192021.pdf

The way they state owner forgiveness makes me think we can go with a 2.5 month period instead of 10.75 weeks. This is very beneficial for those who get funded for First Draw in the next 10 days, as February is a short month, and leaves just about enough time to go for Second Draw.

They FTE/Salary reduction waiver is only in place for loans of $50k or less. Between $50k+ and $150k you have to follow the reduction rules even though you can use the easier form.

Can you please clarify - isn't 2.5 months the same as 10.75 weeks. At this point already 2.5 months is after March 31. If I don't have any eligible expenses to make my spending faster than the full 2.5 months, is there any chance I can get second draw before March 31? My first draw was just approved - still awaiting the final document to sign and the funds to be deposited.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2967 on: January 20, 2021, 12:04:09 PM »
Can you please clarify - isn't 2.5 months the same as 10.75 weeks. At this point already 2.5 months is after March 31. If I don't have any eligible expenses to make my spending faster than the full 2.5 months, is there any chance I can get second draw before March 31? My first draw was just approved - still awaiting the final document to sign and the funds to be deposited.

You're right you're right...
Because of Feb it's less than 10.75, but it's still after 3/31 so that doesn't help us much.

Offline oldguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2968 on: January 20, 2021, 02:07:56 PM »
You're right you're right...
Because of Feb it's less than 10.75, but it's still after 3/31 so that doesn't help us much.
So in other words it's impossible for an independent contractor to double dip?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2969 on: January 20, 2021, 02:12:14 PM »
New forgiveness forms are out:
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-Instructions--Form-3508S-1192021.pdf
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-Instructions--Form3508EZ-1192021.pdf
https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-Application-and-Instructions--Form-3508-1192021.pdf

The way they state owner forgiveness makes me think we can go with a 2.5 month period instead of 10.75 weeks. This is very beneficial for those who get funded for First Draw in the next 10 days, as February is a short month, and leaves just about enough time to go for Second Draw.

They FTE/Salary reduction waiver is only in place for loans of $50k or less. Between $50k+ and $150k you have to follow the reduction rules even though you can use the easier form.

Can I just submit this to my (1st draw from 2020) lender or do I have to wait for them to open (simplified, any really) forgiveness on their platform?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2970 on: January 20, 2021, 02:19:43 PM »
So in other words it's impossible for an independent contractor to double dip?

If you have Schedule C deductible expenses, you can lower it to 6.75 weeks by using 60% for owner comp, and 40% for other expenses.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2971 on: January 20, 2021, 02:46:59 PM »
So in other words it's impossible for an independent contractor to double dip?
as written already up-thread I don't think that you need to wait 8 weeks to apply. since only by getting PPP2 disbursed u need to have funds of PPP1 used up, and you don't need to spend it on eligible FORGIVENESS expenses, eligible expenses is enough

Offline oldguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2972 on: January 20, 2021, 03:02:15 PM »
as written already up-thread I don't think that you need to wait 8 weeks to apply. since only by getting PPP2 disbursed u need to have funds of PPP1 used up, and you don't need to spend it on eligible FORGIVENESS expenses, eligible expenses is enough
But if I spend it on expenses that are not forgivable, How would I get it forgiven?

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2973 on: January 20, 2021, 03:09:32 PM »
But if I spend it on expenses that are not forgivable, How would I get it forgiven?
You don't need to spend the money from the PPP incoming transfer to be eligible for forgiveness, you can apply now once the money is spend on eligible expenses, after 24 weeks if between all business expenses you had spend again an amount on payroll that is eligible for forgiveness you can apply than for forgiveness

Offline 123-Rosh

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2974 on: January 20, 2021, 03:53:13 PM »
You don't need to spend the money from the PPP incoming transfer to be eligible for forgiveness, you can apply now once the money is spend on eligible expenses, after 24 weeks if between all business expenses you had spend again an amount on payroll that is eligible for forgiveness you can apply than for forgiveness
I think this is misleading

Offline oldguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2975 on: January 20, 2021, 06:28:13 PM »
When applying for 2nd draw, on a schedule C, Can line line 31 be 25% less? Or the 1099 has to be 25% less?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2976 on: January 20, 2021, 06:35:34 PM »
When applying for 2nd draw, on a schedule C, Can line line 31 be 25% less? Or the 1099 has to be 25% less?

If going for an annual reduction line 7 plus line 4 in 2020 has to be 25% less than the line 7 plus line 4 in 2019.
I suggest you read my post ;)

Offline oldguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2977 on: January 20, 2021, 06:44:45 PM »
If going for an annual reduction line 7 plus line 4 in 2020 has to be 25% less than the line 7 plus line 4 in 2019.
I suggest you read my post ;)
Thank you, Sorry, I did when you 1st wrote it, but i forgot..

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2978 on: January 20, 2021, 07:45:49 PM »
I just got my approval from biz2credit!
I referred two relatives there, and they also were both approved.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2979 on: January 20, 2021, 07:53:26 PM »
I referred two relatives there, and they also were both approved.

Does the SBA process applications in the order they’re received?